Khatri plays on a local cricket team with a number of friends from University, including Patel, his brother-in-law and an attorney, and Ahuja, who owns a software company called ZeroPower (ZP). Patel does the legal work for ZP. Over the years, Khatri, Patel, and many other friends in their circle invest in Ahuja's company. A large global IT company makes an offer to buy ZP at a substantial premium over the company's current share price. Patel works with lawyers from the acquiring firm to assist in their due diligence. One weekend, during a particularly intense period of negotiations, while Khatri, Patel, and Ahuja are playing in a cricket tournament, Patel speaks repeatedly with representatives of the acquiring firm on his cell phone between cricket matches. Khatri partially overhears Patel's discussions. Although it is not explicit that an acquisition of ZP is being considered, Khatri hears Patel mention repeatedly the name of the acquiring firm. Khatri guesses that ZP is likely to be acquired by the firm because he sees Patel and Ahuja huddled in private conversation several times over the course of the weekend. On Monday Khatri calls his broker and increases his investment in ZP by 5,000 shares. One week later, ZP announces its acquisition by the large IT firm and its share price increases by 30%. Khatri's actions are A. acceptable because Khatri's investment was based on his own speculation. B. acceptable because Khatri is not an insider of ZP or the acquiring firm. C. acceptable because Khatri received the information in a public environment. D. acceptable because Khatri used the Mosaic Theory to make his decision to increase his investment in ZP stock. E. none of the above.